February 13, 2017
Verdict – The technical breakout from the ascending triangle is now underway, putting the May futures in bullish territory. We are also seeing an increase in open interest and volume on up days, which would indicate that money flows are entering into the market.
Resistance can be found at CNY 720 and CNY 729 from the weekly pivot levels, with the first of the Fibonacci resistance levels at CNY 739. A close below the weekly pivot level CNY 702 could have short term bearish implications to the market, and could create a pullback to the breakout level of CNY 666, to test if the previous resistance is now acting as a support.